Leveraging community to drive marketing and business ROI
@LaurenPerkins
Founder and CEO @PerksConsulting Business & Marketing Faculty @GA
Author #CMplaybook
COMMUNITY DRIVEN MARKETING
©Perks Consulting Inc. @laurenperkins
LAUREN PERKINS
Lauren is a brand marketer, community builder and author of The Community Manager’s Playbook.
Founder and CEO of Perks Consulting
THINK LIKE A BRAND. ACT LIKE A STARTUP.™
INTRODUCTION
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• Community as a Marketing Lever
• Measuring contribution of community
• Reporting
AGENDA
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What Matters Most
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BRAND AND MARKETING PERFORMANCE
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MAKE THEM WANT YOU!
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We have a brand + marketing strategy
Strategy inputs for Brand & Marketing Execution
We have a BRAND
= Brand Guide + Assets (Ready to use in market)
We have a brand customers LOVE
= Validation (We have Community!)
Your Brand* drives demand
Customers want you!
$
ROLE OF MARKETING
MARKETING The distribution of the brand, message, product promise. Marketing is
tangible, and is a vehicle for driving exposure and/or traffic.
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MARKETING BRANDING
I UNDERSTAND "YOU’RE A "
GREAT LOVER."I’M A GREAT"
LOVER."
* http://www.liquidagency.com/blog/wp-content/uploads/greatlover_slides.pdf
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THE OLD GAME
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A
I
D
A
AWARENESS
INTEREST
DESIRE
ACTION
THE PLAYING FIELD HAS CHANGED—HERE ARE THE NEW RULES
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CONSIDERATION BRAND LOVE SELECTION
BUILD THE LOVE “EXPERIENCE”
KEEPING THE LOVE ALIVE
EVALUATION
THE MARKETING SPIRAL
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THE MARKETING SPIRAL
AFFINITY
COMMUNITY
CONVERSATION
PARTICIPATION
INTERACTION
ENGAGEMENT
AWARENESS
Traditional Push Marketing Community Social Media
SOCIAL MEDIA/ MK ≠ COMMUNITY
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DEFINITION OF COMMUNITY Group of individuals with set of common interests that are
engaging with each other
WHO IS IN YOUR COMMUNITY? • Customers
• Employees
• Partners • Suppliers
• Other stakeholders
WHAT IS COMMUNITY?
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OMG WTF?! KEEPING UP WITH THE COMMUNITY
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Business Goals Sample objec2ves
Awareness Increase reach through WoM and viral marke2ng
Loyalty Increase customer loyalty/brand affinity
Commerce Drive product sales Generate subscrip2on revenue from paid community access
Insights/ Innova2on
Pipeline for customer input to drive incremental improvement
Service and Support
Call deflec2on for cost savings, incident avoidance, reduc2on, 2me to close
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SET THE BAR
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Business Goals Sample objec2ves Community Ac2ons Needed
Awareness Increase reach through WoM and viral marke2ng
Community members share informa2on on their social networks
Loyalty Increase customer loyalty/brand affinity Members report high customer sa2sfac2on Members purchase more product
Commerce Drive product sales Generate subscrip2on revenue from paid community access
Members buy products People subscribe to be part of the community
Insights/ Innova2on
Pipeline for customer input to drive incremental improvement
Members provide feedback on what they like, want in the product
Service and Support
Call deflec2on for cost savings, incident avoidance, reduc2on, 2me to close
Members search knowledge base for answers before calling or emailing customer support
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CLEAR THE BAR
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ENGAGE • Respond to posts on social media (thank you, answer questions)
SHARE • Blog posts, podcasts, webinars, forum submissions, social media posts,
conference presentations, etc. • Engage guest bloggers, experts, journalists
IDENTIFY • Cause related • Affiliate programs • Product related
RECOGNIZE • Thank you packages • Key influencer engagement programs – access/input to new product info
OFFER
IGNITE
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• Increased engagement on community sites can result in a 25% increase in revenue
Source: The Marketing Science Institute “Social Dollars: The Economic Benefits of Online Communities”
http://cmxhub.com/measure-community-marketing/
COMMUNITIES THAT DELIVER
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25% REVENUE
http://cmxhub.com/measure-community-marketing/
• Increasing retention rate by 5% can increase profits by up to 95% over the long term
Source: The Fetch”How Threadless, The Huffington Post, and Fitocracy Understand the Business Value of Community”, HBS
COMMUNITIES THAT DELIVER
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5% RETENTION
RATE
95% PROFITS
=
REPEAT CUSTOMERS
VS
http://cmxhub.com/measure-community-marketing/
• Repeat customers spend 67% more than new customers
COMMUNITIES THAT DELIVER
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$
67% NEW
CUSTOMERS
http://cmxhub.com/measure-community-marketing/
• Loyal customers are worth 10 times as much as their first
purchase
• Word-of-mouth recommendations influence 80% of customer
decisions Source: Marketo’s post Looking for Higher Marketing ROI? Engage Your Customers
• Handful of people in the early Salesforce MVP program generated 5-7% of their Twitter mentions
COMMUNITIES THAT DELIVER
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http://cmxhub.com/measure-community-marketing/
• Community members spend 2x more and have a 33% higher adoption rate than non-community members.
Source: CMX/salesforce.com
COMMUNITIES THAT DELIVER
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ADOPTION RATE
33% COMMUNITY MEMBERS
Identify relevant metrics for your business goals and objectives Define success carefully Track, measure, learn, adjust Report
THE SYSTEM: TRACKING AND REPORTING ROI
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AWARENESS
• Leads and Conversions • Cost savings – reduced
marketing costs • Recruitment costs
LOYALTY • Customer satisfaction • Net Promoter Score • Customer Sentiment • Customer Lifetime value
BUSINESS GOALS & METRICS
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REVENUE/COMMERCE • Product sales • Community subscriptions • Ad revenue
CUSTOMER SUPPORT • Cost savings • Knowledge base
INSIGHT/INNOVATION • Ideas generated
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MEMBERSHIP • New members • Total members • Active members • Inactive members
ACTIVITY/TRAFFIC • Page views/Opens/clicks • Volume of content/contributions • New member contributions • Traffic from search engines
CONTRIBUTORS • Total • Most active • Key influencers
ENGAGEMENT • Participation in events • Conversations & depth of thread • Sharability - links from content to
social media • Community members activity on
other platforms • Time to respond to questions • Ticket resolution
COMMUNITY METRICS - QUANTITATIVE
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• Sentiment
• Key influencers
• FAQs
• Popular content types (shares, comments, likes, etc.)
• Member satisfaction/feedback
• Crowd sourcing ideas
• Market Research
• …and their hopes, dreams, and fears
COMMUNITY METRICS - QUALITATIVE
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Awareness Objec2ve Community Ac2on Metrics Business Outcomes Metrics
SEO • Generate traffic from search engines
• Reduce cost of genera2ng search traffic
• Top search engines visitors are using • Top keywords that brought them • Top community URLs for search engine traffic
• Page views, 2me on site
• Results page placement for keywords • $ value of increased placements • Number of pages indexed in search engines • Comparison of cost of traffic from search engines from various methods
• SEO cost savings achieved
Reach • drive traffic during specific campaign periods
• Amount of shared/viral content • # of invita2ons for others to join community
• # men2ons across social sites
• Clicks on links, tracking codes
Lead Genera2on • Generate prospects • # registra2ons • # Informa2on downloads, promo2on codes, event aSendance by user
• Lead volume, cost per lead, lead value • Conversion rate • Sales value to community members • Comparison by channel
Brand PR/ Management
• “Canary in a coal mine” • # Issues raised • Customer quotes
• Response 2me to poten2al issues • # Issues averted • Cost savings from aver2ng issues
Source: Oracle, Best Prac2ces for Measuring the Return of Online Communi2es
LINKING COMMUNITY METRICS TO BUSINESS METRICS - AWARENESS
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Revenue Objec2ve Community Ac2on Metrics Business Outcomes Metrics
Product Sales • Increase product sales revenues
• Click throughs to promo2on • Click throughs to shopping carts from community
• Revenues – cross sell, up sell members vs non-‐mem bers
Adver2sing • Revenue from ads on community sites
• Pages served • Time on site • Sessions
• # ad served • CPM
Subscrip2ons • Increase revenues from subscrip2ons/par2cipa2on in events
• Links to subscrip2on pages • Registra2ons
• $
Source: Oracle, Best Prac2ces for Measuring the Return of Online Communi2es
LINKING METRICS TO GOALS & USE CASES - REVENUE
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Source: The Community Roundtable
KEEP IT MANAGEABLE – CONSIDER COMMUNITY MATURITY
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STRATEGY
LEADERSHIP
CULTURE
COMMUNITY MANAGEMENT
CONTENT & PROGRAMMING
POLICIES & GOVERNANCE
TOOLS
METRICS & MEASUREMENT
HIERARCHY EMERGENT COMMUNITY COMMUNITY NETWORKED
Familiarize & Listen
Command & Control
Reactive
None
Formal & Structured
No Guidelines for UGC
Consumer tools used by individuals
Anecdotal
Participate
Consensus
Contribute
Informal
Some user generated content
Restrictive Social Media policies
Consumer & Self-Service tools
Basic Activities
Build
Collaborative
Emergent
Defined roles & processes
Community created content
Activities & Content
Integrate
Distributed
Activist
Integrated roles & processes
Integrated formula & user generated
Inclusive
Behaviors & Outcomes
‘Social’ functionality is integrated
Mix of consumer & enterprise tools
Flexible Social Media policies
Stage 1 Stage 2 Stage3 Stage 4
GROW START BUILD
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SO WHO CARES?
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COMMUNICATING THE VALUE OF COMMUNITY TO THE REST OF THE ORGANIZATION
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CUSTOMER
• Who is your target audience?
• What do they care about and what they are
accountable for?
• What do they need? What will they do with it?
• When and how frequently do they need it?
• How do they need it presented?
REPORTING – COMMUNICATING THE VALUE OF COMMUNITY
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The internal selly-selly—mining for gold
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Make sure community and marketing play nice
Know the playing field
Follow the money
Sell it up the chain
THE COMMANDMENTS
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QUESTIONS?
@laurenperkins
@perksconsulting
linkedin.com/in/perksconsulting
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#CMPLAYBOOK AVAILABLE NOW!
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